Indian markets repeated last Tuesday’s stellar performance today as well with another spectacular rally. After five straight sessions of lackluster show, investors suddenly swung into action with full force. The result was a secular surge in stocks, spurred by a combination of local and external factors. There was no stopping the risk rally today. If anything, the advance only got better and better as the session wore on. The icing on the cake was that the two main indices closed near their session highs with a full flourish.

What was heartening about today’s spurt was that not for a minute did the markets look like losing any steam. As a result, the Indian equity benchmarks managed to blow past important psychological levels. While the NSE Nifty comfortably breached the 4,800 mark the BSE Sensex surpassed 16,100. But, for a second successive session, the broader indices stole the thunder from their Large-Cap peers. The market breadth was extremely favourable today.

Key benchmark indices surged to attain their highest level in 4-1/2 weeks as firm global stocks boosted sentiment. The market sentiment was also boosted by media reports that state governments in India have given their in-principle approval to a proposed national goods and service tax (GST), raising hopes that the ambitious tax reform could be included in the upcoming budget. The barometer index BSE Sensex reclaimed the psychological 16,000 mark. The Sensex jumped 350.37 points or 2.22%, up close to 265 points from the day's low and off about 15 points from the day's high.

The Sensex has jumped 710.17 points or 4.59% so far in this month. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 3,646.05 points or 18.4%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,029.23 points or 6.79%.